Banks led by IDBI Bank will soon sell 71% equity stake of thermal power company Lanco Anpara Power to Hyderabad-based Megha Engineering and Infrastructures for ₹855 crore, said two people aware of the development. Although Lanco Anpara Power, a special purpose vehicle (SPV) of bankrupt Lanco Infratech, is a performing asset, lenders decided to monetise 71% equity stake that defaulter Lanco Infratech had pledged as security against ₹12,000-crore loans.
Lanco Infratech is under liquidation. To recover part of their dues, the lenders invited offers for 71% of Lanco Anpara at a reserve price of ₹819 crore.
AgenciesThe out-of-court sale follows a competitive bidding process undertaken by lenders, wherein Deloitte Touche Tohmatsu India was appointed as the process advisor.
Megha Engineering outbid Hindustan Power projects and iLabs Group to emerge victorious, people cited above said.
The company did not respond to requests for comments until press time on Friday.
The proceeds from the sale of 71% stake of Lanco Anpara will go to the lenders of Lanco Infratech. Another 28.8% stake of Lanco Anpara, held by Lanco Thermal Power, is pledged with lenders of Lanco Anpara that has outstanding loans of ₹2,372 crore. They include term loans of ₹1,990.4 crore and working capital loans of ₹381.4 crore as of March 31, 2021.
State-owned infrastructure finance company REC had the highest exposure of ₹809 crore among the lenders of Lanco Anpara, followed by IIFCL with an exposure of ₹389 crore.
Other lenders include the Central Bank of India, Bank of India, Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. Private lenders Yes Bank and ICICI Bank, too, had provided working capital loans to the bankrupt company.
Lanco Anpara Power is a coal-fired thermal power project with two units of 600 MW each, located near Anpara in Uttar Pradesh. The first unit was commissioned in December 2011, followed by the second unit in January 2012.
The company has a long-term power purchase agreement with UP Discom ending in 2036 for unit 1 and 2037 for unit 2, and both are extendable by five years.
Unlisted Megha Engineering is an engineering, procurement and construction (EPC) company that has undertaken projects related to irrigation, power, transportation and drinking water, according to the company’s website.
Source: Economic Times